Gold has enjoyed greater demand in a low interest-rate environment as the hard asset becomes more attractive to investors compared to yield-bearing assets. However, traders lose interest in gold when rates rise since the bullion does not produce a yield.
“We note that in the futures market, the open interest in gold turned down sharply starting last week. However, silver open interest diverged, and continued to skyrocket,” according to ETF Daily News.
Year-to-date, investors have pulled just over $107 million from SLV.
For more information on the silver market, visit our silver category.
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